Source: Faroe Petroleum
Natural gas and condensate have been discovered at the Fogelberg prospect, located in PL433 in the Norwegian Sea. Following a period of coring and extensive data acquisition, the well reached a vertical depth of 4,736 meters below the sea surface and was terminated in the Åre formation in lower Jurassic.
The objective of the well was to prove hydrocarbons in the Garn, Ile, Tofte and Tilje Formations in middle and lower Jurassic reservoirs. Gas and condensate was encountered in the Garn and Ile formations, while the fluid contacts and content within the deeper Tofte and Tilje formations remain inconclusive at this stage, although they may be water bearing.
The gross size of the discovery has been estimated to be in a range between 105 and 530 billion cubic feet (between 19 and 95 million barrels of oil equivalent) of recoverable gas and condensate. The volumetric uncertainty remains relatively large at this stage due to the position of the Fogelberg well which is located relatively high on the structure. An appraisal well is likely to be needed to prove the down-dip extent and the actual size of the discovery.
Fogelberg is located 18 kilometers northwest of the producing Åsgard complex where large quantities of gas and condensate are being processed and transported to several landing points on the European continent. Through the Gassled system, Norway has a well established and regulated access and pricing regime for third party gas transportation.
Faroe was awarded the Fogelberg license in 2007, as one of its first licenses on the Halten Terrace in the Norwegian Sea. Since then, Faroe has built a significant portfolio of seven licenses in this prolific area. The Company has detailed knowledge of the petroleum system in this oil province, confirmed by the Fogelberg discovery which is the Company's first in this core area. The discovery reduces the risk on several of the Company's identified exploration prospects in this area, which will now become the focus of potential follow up drilling, in addition to appraisal of the Fogelberg discovery itself.
Centrica Resources Norge AS serves as the operator of the well with 28% interest. Partners include Petro-Canada Norge AS with 30%, Faroe Petroleum with 15%, E.ON Ruhrgas Norge AS with 15%, and North Energy AS with 12%.
“Fogelberg is Faroe's first Norwegian discovery and in addition to its commercial potential, we believe we may have now unlocked the considerable upside in our license position in this core Halten Terrace area in which we hold six further licenses,” said Graham Steward, chief executive of Faroe Petroleum.
"The Fogelberg well is the first of a firm five well exploration drilling program which Faroe Petroleum is participating in through 2010,” he added. “The second well in the program, to be operated by Wintershall, is the Maria well (Faroe 30%) which is scheduled to commence drilling in the next few weeks. We are also scheduled to drill three further high impact exploration wells, the Anne Marie oil prospect in the Faroes (operated by Eni), the Cardhu oil prospect in the UK (operated by BP) and the Lagavulin oil prospect in the UK (operated by Chevron)."